Macroeconomics

As the world turns upside down, Mariana Mazzucato discusses how to shape an economy that works for everyone

Remedies have failed to produced growth and reduce indebtedness because they’re focused on protecting toxic behavior by banks in Europe’s core countries

The Volcker Alliance has launched a series of new papers with important proposals for reforming financial regulations to guard against future crises 

Neither do rapid growth in government debt, declining interest rates, or rapid increases in a central bank’s balance sheet

Mission-oriented public investment is vital to spur a revival of private-sector investment

Economists offer widely different explanations for the decline in trade between nations, in a debate that remains unresolved but is increasingly urgent

A conversation with Richard Vague, Managing Partner at Gabriel Investments and Chairman of the Governor’s Woods Foundation.

Seven dangers of chronically low interest rates amid austerity and fiscal-policy phobia

Like the Great Depression and the stagflation of the ’70s, the anemic growth of the U.S. economy can’t be understood or remedied without changes in economists’ thinking

Social safety nets don’t always need to come with a dark side

Institute for New Economic Thinking launches a far-reaching research effort into causes and potential remedies for the low-to-no-growth malaise afflicting many of the world’s leading economies

A conversation with Robert Johnson, President of the Institute for New Economic Thinking, former Managing Director for Soros Fund Management and former Chief Economist of the US Senate Banking Committee.

The financial system no longer funds new ideas and projects — only about 15 percent of the money coming out of financial institutions goes into business investment; the rest is spent buying and selling existing financial instruments.

Eight years after the crisis erupted, what the global economy is experiencing is starting to look less like a slow recovery than like a new low-growth equilibrium. With monetary policy unable to stimulate demand, or even inflation, it’s time for fiscal authorities to relieve the burden on central banks.

The main point of this paper is that loanable funds macroeconomic models with their “natural” interest rate don’t fit with modern institutions and data. Before getting into the numbers, it makes sense to describe the models and how to think about macroeconomics in the first place.